Orlando Florida FHA Loans

Home loans through the Federal Housing Authority (FHA) have been a cornerstone for individuals in unique financial situations looking to purchase homes in Florida for over a century. These loans are particularly beneficial for borrowers who might find it challenging to secure financing through conventional lending methods.

AAs an integral part of HUD, FHA loans are backed by the Federal Government, providing several benefits including::

• Lower down payments
• Reduced closing costs
• Simplified qualifying criteria

Individuals with a credit score of 580 or above may be eligible to finance up to 96.5% of a home’s value with an FHA loan. Those with credit scores ranging from 500 to 579 could still qualify for an FHA loan but with a 10% down payment requirement.

FHA loans can be utilized for buying a home, refinancing, or making home repairs on properties ranging from 1 to 4 units. Eligible borrowers might only need to put down as little as 3.5% of the home’s purchase price.

Who Qualifies for FHA Loans?

First-time Homebuyers – FHA loans offer a more accessible financing option for first-time buyers with low income, poor credit, or limited credit history. Given the Federal Government’s backing, banks are more inclined to lend to individuals considered higher risk, which might mean higher interest rates and PMI compared to other loan types. Take our quiz to see if you qualify for additional loan assistance.

Seniors – Individuals aged 62 and above who fully own their homes or have minimal loan balances may be eligible for the FHA’s reverse mortgage program, the Home Equity Conversion Mortgage (HECM). This program allows seniors to transform a portion of their home equity into cash to help cover living expenses while maintaining ownership of their home.

Home Improvement – Individuals aged 62 and above who fully own their homes or have minimal loan balances may be eligible for the FHA’s reverse mortgage program, the Home Equity Conversion Mortgage (HECM). This program allows seniors to transform a portion of their home equity into cash to help cover living expenses while maintaining ownership of their home.

Purchasing Fixer-uppers – The FHA’s 203(k) Improvement Loan caters to those buying homes that need repairs, folding the cost of these repairs into the overall loan amount.

Mobile Home Residents – There are FHA loan options available for individuals with mobile or factory-built homes, whether they own the land beneath or if the home is located within a mobile home park.

If you’re pondering whether an FHA loan is the right path for you, the team at Orlando Mortgage Company is eager to assist. Reach out to us with any inquiries you might have about applying for FHA lending programs.